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Market Definition And Unilateral Competitive Effects In Online Retail Markets

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  • Michael R. Baye

Abstract

Although the basic principles used to define a relevant market or to analyze unilateral competitive effects in traditional retail settings also apply in online retail markets, several features of the online environment add complexities to the analysis. This paper examines some of the results in the economics and marketing literatures that can influence market definition and competitive effects analysis in online retail settings. I argue that a failure to account properly for certain aspects of online markets can lead to erroneous definitions of the relevant market and, more importantly, erroneous conclusions regarding the unilateral competitive effects of horizontal mergers.

Suggested Citation

  • Michael R. Baye, 2008. "Market Definition And Unilateral Competitive Effects In Online Retail Markets," Journal of Competition Law and Economics, Oxford University Press, vol. 4(3), pages 639-653.
    • Handle: RePEc:oup:jcomle:v:4:y:2008:i:3:p:639-653.
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    File URL: http://hdl.handle.net/10.1093/joclec/nhn015
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    More about this item

    JEL classification:

    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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